Credit Suisse Manager Pay Is Opposed by Third Shareholder Group

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This content was published on April 12, 2017 7:10 AMApr 12, 2017 - 07:10

(Bloomberg) -- Credit Suisse Group AG’s compensation plan faced increasing opposition Tuesday as a third advisory group recommended shareholders reject proposed pay packages for top executives and directors at this month’s annual meeting.

Institutional Shareholder Services Inc. advised investors to reject proposals to pay 26 million francs ($26 million) in short-term bonuses and a maximum of 52 million francs in long-term bonuses to the bank’s executive board. It also opposed a plan to increase the maximum compensation for the board of directors.

“Despite a second consecutive net loss, variable remuneration levels for the executive board remained high,” the group said in an emailed report Tuesday.

ISS is the third proxy adviser criticizing the Swiss bank’s pay proposals as excessive considering that the bank posted a second annual loss last year. Swiss law requires companies listed in the country give shareholders a binding annual vote on executive pay.

“We take note of the recommendations put forward,” said Tobias Plangg, a spokesman for the Zurich-based bank. “Credit Suisse respects shareholder democracy.”

Earlier this month, Glass Lewis & Co. advised Credit Suisse shareholders to reject the bank’s proposal on short-term bonuses and said its compensation plans for the board of directors were also excessive. Geneva-based Ethos, which advises major Swiss pension funds that may represent up to 5 percent of the bank’s market capitalization, has recommended voters reject all agenda items related to pay for executives and directors.

To contact the reporters on this story: Cindy Roberts in Zurich at croberts100@bloomberg.net, Jan-Henrik Förster in Zurich at jforster20@bloomberg.net.

To contact the editors responsible for this story: Elisa Martinuzzi at emartinuzzi@bloomberg.net, Christian Baumgaertel, Cindy Roberts